STENPROP LIMITED (Registered in Guernsey) (Registration number 64865) BSX share code: STP.BH JSE share code: STP ISIN: GG00BFWMR296 (?Stenprop?) DISPOSAL OF OFFICE BUILDING LOCATED AT 25 ARGYLL STREET 1. INTRODUCTION Shareholders are advised that Stenprop has disposed of its 50% interest in the property known as 25 Argyll Street, situated at 252-260 (even) Regent Street and 19-27(odd) Argyll St, London, W1 (?the Property?) via a sale of its shares in Stenprop Argyll Limited (?SAL?) to the holders of the remaining 50% interest, being Darlaya Limited (?DL?) and Yennelle Limited (?YL?) which each hold 25% of the issued share capital of SAL, (?the Buyers?) for a consideration of #22.78 million (?the Consideration?) which values the Property at #83.4 million (?the Disposal?). 2. RATIONALE FOR THE DISPOSAL Stenprop has previously announced its intention to become a specialised UK multi-let industrial (?MLI?) REIT and, over the next few years, to sell substantially all of its non-MLI assets and utilise the sale proceeds to build a focused UK MLI business. The Disposal is in line with this strategy. 3. TERMS OF THE DISPOSAL In terms of the Sale and Purchase Agreement signed on 4 June 2018 (?the SPA?), Stenprop (UK) Limited (?Stenprop UK?), a wholly owned subsidiary of Stenprop, sold all of its shares in SAL with effect from the date of the SPA, The buyer acquired Stenprop UK?s shares in SAL for an initial consideration of #22.78 million which was settled in cash, and was based on the estimated net asset value of SAL at the date of the SPA. The Consideration is subject to a further post- completion adjustment to take account of any difference between the actual and the estimated net asset value of SAL at the date of the SPA. Normal warranties and indemnities for a transaction of this nature have been provided by Stenprop. 4. PROPERTY SPECIFIC INFORMATION Weighted Valuation* After tax EPRA average (#) earnings** rental per (#) square GLA metre Property name Geographic location (UK) Sector (sq.ft) (# psf) 252-260 (even) Regent 25 Argyll Street Street and 19-27(odd) Office 63,091 65.15 83 400 000 1 298 641 Argyll St, London, W1 *The value attributable to the 100% of the Property, as determined in accordance with Royal Institution of Chartered Surveyors standards by JLL, an external valuer, is the valuation which will be reflected in Stenprop?s consolidated statement of financial position at 31 March 2018, and is the same as the value derived from the Consideration. This compares with the value attributable to the Property at 30 September 2017, as determined in accordance with Royal Institution of Chartered Surveyors standards by JLL, of #81 million. **Stenprop?s share of the after tax EPRA earnings attributable to SAL is based on Stenprop?s consolidated statement of comprehensive income for the year ended 31 March 2018. 5. CATEGORISATION OF THE DISPOSAL The Disposal is classified as a category 2 transaction in terms of the JSE Listings Requirements. Accordingly, it is not subject to approval by shareholders. Stenprop has a primary listing on the Main Board of the JSE and a secondary listing on the BSX. 4 June 2018 JSE sponsor Java Capital Bermuda Stock Exchange sponsor Estera Securities (Bermuda) Limited